TMCnews Featured Article
September 17, 2009
Voice to Experience 'Revenue Declines' Through 2014
By David Sims, TMCnet Contributing Editor
You may want to sell your shares in consumer voice.
That particular segment of the telecommunications market will "continue to experience revenue declines due to access line losses from wireless substitution and the ongoing migration toward lower-cost VoIP options," to the tune of a net decline of almost $16 billion in the consumer voice market from 2008 to 2014.
The conclusion comes from the latest edition of research firm ATLANTIC-ACM's telecommunications industry sizing and share report.
The study, titled "U.S. Telecom Wired and Wireless Sizing and Share: 2009-2014," projects an 11 percent compound annual growth rate in consumer VoIP revenue from 2008 to 2014, but admits this will not be sufficient to offset the projected decline of 10 percent per year (compounded) from 2008 to 2014 in consumer switched voice revenues.
"We are witnessing the effects of technology migration," said Judy Reed Smith, ATLANTIC-ACM CEO, who also said that consumers are moving toward wireless-only in some cases, and VoIP substitution in others.
Revenues in this particular segment will decline, Smith said, with the silver lining that "this same technology migration is driving growth in other telecom segments such as wireless services and Internet access."
According to the report, total wireless revenues will overtake total wireline revenues by 2014, and consumer Internet access growth will add $7 billion to the market through 2014, driven by fiber-to-the-home plays by AT&T (News - Alert), Verizon and Qwest, which are projected to benefit from a compounded annual growth rate of 28 percent in revenues for those products from 2008 to 2014.
Last month, TMCnet reported that ATLANTIC-ACM presented PAETEC (News - Alert) Holding Corp. with its Voice Value Award in the CLEC/Cable/Fiber category for both enterprise and small medium businesses, or SMBs.
The awards were based on results from the 2009 Business Connectivity and Wireless Report Card, which scores carriers in key product and service categories based on more than 3,000 individual customer evaluation.
The awards were based on results from the 2009 Business Connectivity and Wireless Report Card, which scores carriers in key product and service categories based on more than 3,000 individual customer evaluation.
David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.
Edited by Kelly McGuire
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